TOKYO (AP) -- Japanese Prime Minister Keizo Obuchi announced late Saturday an agreement to launch a coalition government with a minority opposition party in a bid to get economic measures through Parliament.
The political deal forges a link between Obuchi's Liberal Democratic Party and the Liberal Party headed by Ichiro Ozawa, who bolted from the ranks of the LDP in 1993.The move is designed to give the government a stronger hand in Parliament to pass promised measures to revive the economy, mired in its worst recession since World War II.
Obuchi has come under increasing pressure both at home and abroad to jump-start the economy and help ease the global financial crisis.
"We have agreed to work together to seek ways to overcome these difficult times," Obuchi said at a news conference following last-minute talks with the Liberal Party.
"And I'm confident that we can solve tough issues through our coalition."
A new coalition government will be launched before the next regular parliamentary session begins in mid-January, Obuchi said. The arrangement calls for eliminating two Cabinet posts to streamline the government. It follows a tentative accord last month.
Obuchi did not specify what changes would be made when the Cabinet is reshuffled -- or which posts would be eliminated by shrinking the number of ministers from 20 to 18.